When it comes to long leasehold premises in Handforth, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Handforth with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has below 80 years left, under the relevant legislation the landlord can calculate and demand a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Handforth with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Handforth,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Handforth valuers.
Trailing unsuccessful discussions with the freeholder of her basement flat in Handforth, Shannon initiated the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was finalised in June 2013. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. M King who, having took over the lease of a one bedroom flat in Handforth in January 2001. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative properties in Handforth with a long lease were valued around £216,000. The average amount of ground rent was £60 collected annually. The lease expired in 2083. Given that there were 58 years unexpired we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus fees.
Last Christmas we were called by Mrs Kayleigh Moreau , who took over the lease of a basement apartment in Handforth in October 2009. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Handforth with a long lease were worth £205,000. The average ground rent payable was £50 collected annually. The lease came to a finish in 2103. Given that there were 78 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.